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Senior Circuit Breaker Tax Credits

The senior circuit breaker tax credit is not granted by the Board of Assessors but allows a potential State income tax credit. Eligible taxpayers who own their Somerville homes may claim a credit equal to the amount that their property tax payments including 50% of their water and sewer charges for the year exceed 10% of their total income for that tax year. Income limits and maximum assessed value limits are adjusted each year by the State.

To qualify for calendar 2015, taxpayers had to be 65 on or before December 31, 2015. Income could not exceed $57,000 for single persons, $85,000 for married filing jointly, and $71,000 for head of household. Assessed value (full value excluding residential exemption valuation reduction) could not exceed $693,000. In calendar 2015, the credit could not exceed $1,070.

As an example for illustration only, note the following:

Calendar 2015 property taxes plus 50% of water and sewer charges =

$6,000

Calendar 2015 income = $50,000 X 10% =

$5,000

Credit on State income tax =

$1,000

All taxpayers are urged to check with their accountant and/or read State income tax guidelines carefully. Interested seniors can find more information at mass.gov/dor/seniors